Related posts
Most Anticipated Earnings: IAG-T, BDT-T and more Canadian Companies Reporting Earnings this Week (Nov 04-08)Most Anticipated Earnings: MRE-T, PSI-T and more Canadian Companies Reporting Earnings this Week (Aug 05-09).Most Anticipated Earnings: BLDP-T, BOS-T and more Canadian Companies Reporting Earnings this Week (May 06-10)This summary was created by AI, based on 3 opinions in the last 12 months.
K-Bro Linen Inc (KBL-T) is a solid business with good long-term fundamentals, well-run with an excellent management team. It has a strong presence in the medical profession and stable business with long-term contracts and recurring revenue. The company is starting to see more volume since Covid and generates a lot of cash, yet trades at a relatively low EBITDA multiple. It is also in the crosshairs of private equity due to its valuable know-how and margin potential.
It is a solid business, very much under the radar. It is well run with an excellent management team. In 2022 there was a 20% increase in natural gas prices in the UK but it has worked its way though that. It has a strong business with the medical profession. He doesn't want it taken out..
Buy 6 Hold 0 Sell 0
Not the most exciting until you look under the hood. Its M&A cadence is picking up with more deals done recently. Stable business with long-term contracts, recurring revenue. Hospitality, but also healthcare. Finally starting to see more volume since Covid. Great business, generates a lot of cash, yet trades at only 6-6.5x EBITDA. Right in the crosshairs of private equity.
Once it makes an acquisition, it can use its size, scale and know-how to grab more contracts from that geographic area. Don't forget -- they have to pick the stuff up and then deliver it after they clean it. That know-how is really valuable, and they can do it at quite a margin. 15-20% EBITDA margins on contracts.
Likes the managers whom he recently met. Last year was crazy because of European gas prices, especially in the UK where they operate raised their expenses. They're in a stable business and are well-run. Lots of free cash flow that could lead to buybacks and/or dividends. He added on dip earlier this year. KBL is adding capacity that could raise the dividend.
Their business has moved more into healthcare. Last year was hit by extreme gas price movements in the UK. He thought they were protected from inflation when he bought it, though. A stable, underknown business that cranks out cash flow. Likes management.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Dividend yield of 4.0% Stable industry growth and good annual recurring revenues. Geographic diversification across Canada and the UK. Opportunity for future acquisitions. Unlock Premium - Try 5i Free
The balance sheet is in good shape. They have been building new plants in Toronto and Vancouver and developing new markets in the UK. There is about 1.4 times debt to EBIDA, so there are no concerns.
(A Top Pick Jun. 26/17, Down 3%) They have been investing heavily in new plant and equipment. This is a great entry point. They are lowering their costs. They have 30% of the Canadian market and the next biggest player is very weak. There are one time start up costs. This is when you want to invest in these kinds of companies. This is a great entry point and he added to his position recently. You get a great dividend while you wait for higher margins.
There is a lot of weird trading at year-end. You have portfolio managers changing, Short covering, sector reallocation and tax loss selling. He would bet this company’s problem is year-end positioning. A nice solid company. Wouldn't put it in the high growth category. If markets are going to go on a tear, this will underperform. If the market does go down, you are going to be glad you owned it. They sign 10-year facility contracts with their customers.
This has been moving up significantly. Doesn't know if they have new contracts, but over the last few years, they’ve gained a lot of market share in the markets they are in. A smaller company, but extremely well-managed.
K-Bro Linen Inc is a Canadian stock, trading under the symbol KBL-T on the Toronto Stock Exchange (KBL-CT). It is usually referred to as TSX:KBL or KBL-T
In the last year, 2 stock analysts published opinions about KBL-T. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for K-Bro Linen Inc.
K-Bro Linen Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for K-Bro Linen Inc.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered K-Bro Linen Inc In the last year. It is a trending stock that is worth watching.
On 2024-12-06, K-Bro Linen Inc (KBL-T) stock closed at a price of $39.53.
Be patient with it. Has good, long-term fundamentals. Likes the managers for being focused. Could be taken out. They are executing, but sort of fly under the radar.